Tanzania’s GDP projected to grow at 5.3 pct in 2023

Gross Domestic Product growth in Mainland Tanzania and Zanzibar is expected to be around 5.3 percent and 6.1 percent in 2023, respectively according to Monetary Statement Policy Mid-Year Review 2022/2023 released by the Bank of Tanzania (BoT).

According to the Central Bank’s Mid-Year Review 2022/2023 released this week, Inflation is projected to remain within single digit in the second half of 2022/23, below the target of 5.4 percent and around 5 percent in Mainland Tanzania and Zanzibar, respectively.

“In view of the expected improvement in food supply and easing of commodity prices in the world market, the upward risk to inflation will be moderate in the second half of 2022/23,” the report said.

The report noted that global economic activities are expected to remain weak, although  signs of improving are unfolding.

“These promising developments are expected to improve economic activities and reduce inflation in the country,” the report said.

It is against this outlook that Tanzania’s monetary policy will continue to be geared towards reducing monetary policy accommodation in the second half of 2022/23, in order to tame second round effects of global shocks on inflation expectations, while safeguarding the growth of economic activities.

In implementing the monetary policy stance, the BoT said it will employ a mix of instruments which will be consistent with the attainment of monetary targets, which are set forth in the IMF Extended Credit Facility arrangement.

“The Bank of Tanzania will also maintain surveillance of global economic trends and associated risks to the domestic economy, and take additional policy actions if needed,” the report said.

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